P6.5 Comprehensive problem set on 1 January 201, P Co acquired 70% ofsCo by issuing 1,000,000 new shares to the owners ofSCo. The fair value of consideration paid by P Co to acquire S Co was $2,100,000. The fair value of non-controlling interests at acquisition date was $900,000. On 1 January 20x2, P Co acquired a 40% ownership interest in A Co by making a cash payout of $200,000 to the owners of A Co. The following information relates to statements of financial position at date of acquisition: S Co Book value S Co Fair value A Co Book value A Co Fair value In-process R&D $1,000,00 $100,000 120,000 140,000 10,000 $140,000 120,000 140,000 10,000 $410,000 50,000 50,000 550,000 100,000 20,000 $1,720,000 Accounts receivable 100,000 20,000 $670,000 $ 50,000 0 250,000 300,000 120,000 50,000 50,000 Share capital Retained earnings Equity and Liabilities.. 120,000 $670,000 $1,720,000 $370,000 $410,000 The following financial statements relate to the financial year ended 31 December 20x3. Income statement For Year Ended 31 December 20x3 P Co S Co A Co $2,000,000 $ 700,000 (100,000) Sales $5,000,000 $3,500,000 $1,000,000 500,000 140,000 (70,000) 990,000 460,000 620,000 (136,400) (60,000) 160,000 583,600 (198,000) $ 792,000 92,000) 368,000 (100,000) 483,600 Dividends declared 742,00 68000 423,600 3,242,000 518,000